Off-Market vs. On-Market Deals: Which is Better?
Photo by Aaron Sousa on Unsplash
Are off-market deals better than on-market deals? Which is the better route to take? As with many questions in commercial real estate, the answer is simple: it just depends.
Both approaches have their advantages and trade-offs. Understanding the difference—and when to pursue each—can make a big impact on your investment strategy, especially in a competitive market like Greater Nashville.
What Are On-Market Deals?
On-market deals are listings that are actively marketed to the public. These properties are typically found on platforms like CoStar, LoopNet, or Crexi, and they’re promoted widely through brokerage networks, email campaigns, and listing services.
Advantages of On-Market Deals:
Transparency: You’ll have access to detailed offering memorandums, financials, and standardized data.
Competition sets the price: Multiple offers can create a clearer picture of current market value.
Potential Drawbacks:
More competition: Higher visibility means more buyers in the mix, driving prices up.
Less flexibility: Terms may be less negotiable because sellers know they have options.
What Are Off-Market Deals?
Off-market deals are properties that are available for sale but not publicly listed. These opportunities often come through broker relationships, personal networks, or direct conversations with property owners.
Advantages of Off-Market Deals:
Less competition: You’re often negotiating one-on-one with the seller.
Room for creativity: With fewer bidders, terms may be more flexible.
Access to hidden gems: Some of the best properties never make it to market at all.
Potential Drawbacks:
Limited information: Without a formal marketing process, due-diligence materials may be more more difficult to attain.
Less pricing transparency: Without comparable offers, it’s harder to know if you’re getting the best price.
Relationship-dependent: Success in off-market acquisitions often comes down to who you know.
Which Is the Better Route?
It depends on your goals, your network, and your risk tolerance.
Investors looking for transparency or sellers looking for an expanded pool of buyers may prefer on-market deals.
Investors seeking unique opportunities or more negotiable terms may benefit from pursuing off-market deals.
In Nashville, where the commercial real estate market is dynamic and highly competitive, savvy investors often use a blend of both approaches: tracking public listings while also cultivating broker and owner relationships that lead to off-market opportunities.
Final Thoughts
There’s no “one-size-fits-all” answer. What matters most is aligning your strategy with your objectives, your resources, and the type of property you’re seeking. However, all things being equal, off-market deals typically advantage the buyer, while on-market deal normally benefit the seller.
At Chandler James Retail Team at Lee & Associates, we help our clients navigate both on- and off-market opportunities in retail and commercial real estate across Nashville. Our network, market knowledge, and hands-on approach ensure that whether you’re competing in a public bid process or quietly negotiating an off-market transaction, you’re positioned to make the smartest investment possible.
📞 Ready to explore opportunities? Contact us today and let’s discuss how we can help you identify the right path forward.
